Domino's Pizza Enterprises Limited · ASX:DMP
Domino's Pizza Enterprises — Investor Presentation (October 2009)
20 slides from Domino's Pizza Enterprises's investor presentation, Oct 20, 2009
Slide 1: European Investor Presentation – October 2009
For personal use only European Investor Presentation – October 2009
Slide 2: Contents
Contents For personal use only 1. Background 2. Results Highlights FY09 3. Looking Forward 2
Slide 3: 1. Background
For personal use only 1. Background
Slide 4: Who is Domino's Pizza Enterprises?
Who is Domino’s Pizza Enterprises? • Domino’s Pizza Enterprises (DMP) holds the For personal use only exclusive Master Franchise Agreements for the Domino’s brand and network in Australia, New Zealand, France, Belgium and The Netherlands. • Largest pizza company in Australia, France and The Netherla
Slide 5: Key Events in Our History
Key Events in Our History NETWORK STORE NUMBERS 900 For personal use only • 1983 – first Domino’s store opened in CAGR 2001-2009: 17.8% Australia 800 • 1993 – Domino’s Master Franchise 700 purchased by Silvio’s Dial a Pizza 260 • 1995 – Silvio’s and Domino’s combined 232 600 • 2001 – Foundations of
Slide 6: Strong, Consistent Financial Performance
Strong, Consistent Financial Performance • Diverse revenue base consisting of: For personal use only NPAT 2007 - 2009 • Operating revenue from Company owned stores; 18.0 • Franchise royalties and other fees & charges for services provided to Franchisees; 16.0 • Commissary revenue from sale of goods
Slide 7: Domino's Pizza Europe – the History
Domino’s Pizza Europe – the History France For personal use only • Opened by local master franchisee in early 1989 • Underperformed and failed to grow Network • Came under the control of Domino’s Pizza International (DPI) in 1999 The Netherlands • Master franchisee opened first store in 1989 • Pione
Slide 8: How we saw the European Opportunity?
How we saw the European Opportunity? • Not only was there a well established pizza market, other branded chains had proven that this model For personal use only works in the European market – • McDonald’s had successfully expanded into France and The Netherlands; • Pizza Hut was the market leader in
Slide 9: Domino's Pizza Europe Today
Domino’s Pizza Europe Today STORE NUMBERS BY COUNTRY • DMP acquired these territories in 2006 from DPI as at 7 October 2009 For personal use only Netherlands 96 • Local management team led by experienced ex- pat Australian executives France/Belgium 168 • European store numbers are a significant port
Slide 10: Leadership Team Europe
Leadership Team Europe For personal use only Andrew Rennie Andrew Megson President, France President, Netherlands Andrew joined Domino's in 1994 Joined Domino's as a store and has held a number of roles manager in 1985 before going on within Domino’s Pizza, including to own his own Domino’s that of
Slide 11: 2. Results Highlights FY09
For personal use only 2. Results Highlights FY09
Slide 12: Results Highlights FY09: Group
Results Highlights FY09: Group • NPAT up 29.7% to $15.4m For personal use only F/Y 07 F/Y 08 F/Y 09 +/(-) FY 08 • Strong Network Sales growth +14.4% $ mil $ mil $ mil % over FY08 Network Sales 518.9 591.2 676.4 14.4% • Solid Group SSS growth + 4.6% over Same Store Sales % 3.0% 6.8% 4.6% FY08 • Austr
Slide 13: Results Highlights FY09: Europe
Results Highlights FY09: Europe NETWORK SALES 2002 - 2009 $800 For personal use only • Europe now contributes in excess of one third of total network sales $700 • Strong SSS +4.3% despite rolling over 2.5 years of double digit growth $600 • France celebrated 150th store opening 251.8 $500 191.1 • Fr
Slide 14: Royalties Impact on European EBITDA
Royalties Impact on European EBITDA For personal use only Impact of Royalties paid to US on EBITDA (€'000s) • Underlying earnings reflect strong 7,000 scalability and management initiatives 6,000 • Chart illustrates magnified earnings uplift 5,000 when US royalty payments removed (like- for-like com
Slide 15: 3. Looking Forward
For personal use only 3. Looking Forward
Slide 16: Looking Forward: Australia/NZ
Looking Forward: Australia/NZ • Menu expansion to continue, tailored for the current For personal use only economy and the environment beyond • Continuing to invest in quality of core product to modernize our pizza • Increase the roll out of new image for stores • Focused on driving Delivery growth.
Slide 17: Looking Forward: Europe
Looking Forward: Europe For personal use only • Opening a new Commissary in The Netherlands Jan-Feb 2010 • Will have 95% of France with online ordering by the end of Financial Year • Upgrade the online experience for consumers in The Netherlands • Looking to grow our TV presence • The Netherlands SS
Slide 18: Opportunity for continued growth
Opportunity for continued growth Our European operations provide the opportunity for substantial continued growth: For personal use only • Western market – culture of eating pizza • Significant scale as well as further opportunities for scale • Implementation of DMP systems and processes to improve
Slide 19: Looking Forward - Group
Looking Forward - Group For personal use only • Opening between 40-50 New Stores • FY10 Guidance – NPAT growth of 10%- 15% • Estimated tax rate – 27% • Approximate Net Capex – $15 to $20m • Negligible Net Debt by June 2010; assumes inclusion of $8.8m dividend payment 19
Slide 20: Conclusion
Conclusion For personal use only •Strong experienced Management Team across ANZ & Europe (made up of local and ex-pat) • DMP has the ability to grow from over 780 stores today to 1,600 stores at a rate of 40-50 stores a year. • Through strong Market Leadership, the business is positioned well for so
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